With the COVID-19 crisis now upon us, real estate experts around the world are keeping a close eye on the housing and real estate markets for the rest of 2020. Initial news reports indicate that the real estate market in the midst of COVID-19 is just as hot as ever. Realtors all over the United States are reporting red hot sales numbers.
As unemployment claims will no doubt continue to rise through the second fiscal quarter of 2020, look for the three following real estate trends to play out in this COVID-19-dominated real estate market.
Investor Competition Will Remain Stiff
Over the past few years, real estate blogs, podcasts, and forum communities have sprung up, all of them touting real estate as a great investment opportunity. As a consequence, during the remainder of the year, experts continue to forecast a competitive real estate investment market for aspiring home buyers and real estate investors.
For this reason, one trend real estate experts predict for the rest of 2020 is that investors looking for long-term profits will start to specialize in the type of property investment they are looking for.
Instead, investors are now trying to specialize in one type or style of property to boost their potential profits for the remainder of 2020. Some niche real estate investment opportunities include things like motels, retail spaces, senior living facilities, and multi-family spaces.
Rent Control and Real Estate Investing
One underrated trend that has begun to affect real estate in 2020 is rent control. Rent control laws have been instituted in states like Oregon, New York, and California, places where the demand for housing and real estate have far outpaced wage growth.
For the rest of 2020, real estate investors will have to determine their risk tolerance for investing in states that have rent control rules that will limit profit opportunities.
Changing Workforce Leads to Working from Home
As COVID-19 continues to spread through the United States, more and more Americans are working from home. Clever real estate investors will no doubt see an opportunity to purchase and market properties with home offices for people that are stuck at their house all day. This trend of buying homes that come equipped with an office space will likely become the biggest real estate trend in 2020.